Delhi-NCR-based Omega Seiki, an electric vehicle manufacturing company has announced that it will set up an electric vehicle manufacturing facility near Dhaka in Bangladesh, with an investment of Rs 100 crore.
This the company says will be the first project of any Indian EV company in international markets. The new entity will be called OSM-Bangladesh and will be registered in Bangladesh. At present, Omega Seiki Mobility has two manufacturing plants in India, located at IMT Faridabad and IMT Manesar, Haryana.
According to the company, Bangladesh's economy has grown consistently at 8.5% for the past 5 years, while per capita GDP has also increased to $1800 (Rs 133,218). Bangladesh has a well-established port and goods export system which drives garment export. This will be a big factor in making Bangladesh an export hub for OSM. The project will be a modern greenfield facility and will focus on manufacturing electric two-, three-wheelers, and bicycles.
Uday Narang, chairman, Omega Seiki Mobility said “We are elated to serve our products in the neighbouring country, easing their day-to-day tasks and updating them with the latest EV technology. Indeed, EV is the future and we, as an OEM are sincerely focusing on coming out with the best-in-class vehicles and quality service experience. We trust that our vehicles will cater to an impressive response in the neighbouring country. Bangladesh at present does not have an EV policy but it may change fast. I met many senior officials of BIDA [Bangladesh Industrial Development Agency] and all of them welcomed Omega Seiki. They are very keen to bring this technology to their country and are very happy to provide all the support. I am especially pleased to start from Bangladesh which is in our neighbourhood and a friendly country. We have plans to open in several other countries gradually.”
The company says it will be investing Rs 200 crore in India to focus on R&D and manufacture all the latest technologies and IT-driven businesses in the e-mobility segment but as of now, it is focusing on electric mobility as the first of its businesses.
Dr. Mukherji, MD, Omega Seiki said “With electrification happening fast in automotive markets globally, we see it is time for the Bangladesh market to change as well. The transition in two- and three-wheelers will be fast as they contribute to the pollution and traffic chaos. Our vehicles will be powered by Li-Ion batteries and with powertrains which would-be built-in Bangladesh, with technology transfer from India. In due course, we are looking at full localisation in Bangladesh. We would also be looking to export from Bangladesh to global locations e.g. ASEAN and Africa among others. Bangladesh has a zero-tax policy for exports to 39 countries. This includes India as well and we are looking at selling in the northeast from there.”
The vehicles manufactured in Bangladesh will be sold under the OSM brand through local partners and franchises.